Question 1

Is FD risk-free?

Accepted Answer

Yes, Fixed Deposits in RBI-regulated banks are insured up to ₹5 Lakhs by DICGC. They are considered one of the safest investment options in India.

Question 2

How is FD Interest calculated in India?

Accepted Answer

Most Indian banks calculate FD interest using 'Quarterly Compounding', meaning your interest earns interest 4 times a year.

Question 3

FD vs RD vs SIP - Which is better?

Accepted Answer

FD is best for lump sum investment with guaranteed returns. RD is for monthly savings with guaranteed returns. SIP is for monthly savings with market-linked returns but involves risk.

Question 4

Can I withdraw FD before maturity?

Accepted Answer

Yes, but you will be charged a penalty (usually 0.5% to 1%) and receive lower interest for the period the money was kept.

Fixed Deposit (FD) Calculator